What to Do When Customers Say Your Price is Too High [Examples]
“Your prices are too high. Do you see what your competitors are charging?!”
“That’s expensive. Can I get a discount?”
“Thanks for the estimate, but you are way overpriced for me.”
Price objections from customers, especially in home services, are normal and common. Understandably, customers want to save their money when they can. Who doesn’t?
But it’s also true that you provide a highly-skilled and specialized service that deserves the right price. Your customers may not realize all of the factors that impact your prices—and now is the perfect time to educate them on your value and why you charge what you do.
In these price objection situations, you can let your frustration get the best of you, or you can respond the right way, you maintain your professionalism, and maybe even close the sale.
Try these tips and scripts to deal with every type of price objection from your customers.
STEPS FOR HOW TO DEAL WITH PRICE OBJECTIONS
Before you can respond to a customer’s price objection when you send them an estimate, you first need to take a step back and review the situation.
This simple process will help you to respond tactfully and strategically in price objection situations:
- Listen to your customer. And don’t interrupt! Your customer needs to be heard, and you need to know what concerns are preventing them from booking your services. This is your chance to find out what their roadblocks are.
- Take a breath and take a beat. Give yourself a little bit of time to take in the information and think about what you need to say to either win the job or move along.
- Summarize and repeat their reasoning back to them. This ensures you’re on the same page and you’ve understood their issue. It also gets your customer to reflect on what’s really preventing them from signing a contract with you.
- Ask a follow-up question. If there’s anything else you need to know about what’s preventing your customer from moving forward with booking, this is your time to find out.
- Redirect and de-escalate. Counter their argument and show your customer why you’re the right business for the job and why your price is appropriate.
“Your price is too high”: Price objection rebuttals for every situation
We know how to approach a discussion with a customer complaining about high prices. Now let’s look at the various responses you can use when dealing with a price objection on the job, whether it’s over email, on the phone, or in person.
Price objections situation 1️⃣ : “The price is what it is—let me tell you why”
When a customer says your price is too high, you need to have a good reason that can win you the job. But you may find that some of your customers really just need a little bit of education on why you charge a particular price.
It’s worthwhile to have a few explanations on hand to help you overcome these objections and hesitations, and educate your customers on your value.
1. “Have you paid for this service before?”
The answer to this question will tell you whether your customer knows what this service should cost, or if they’re inexperienced and just don’t know. This can help clear up any confusion they might have and give you the chance to educate them on your price points.
2. “What will it cost you if you don’t get this service?”
Get your customer thinking about the big picture with this question. If they wait to address their problem or shop around for too long, what are the consequences? How bad will doing nothing be? This will also put you in a better spot to show your value.
3. “Our prices are too high compared to what?”
This question ties in nicely with #1. Depending on your customer’s experience with the service, their understanding of “high” or “expensive” will vary. This question will get them to reconsider their stance. Their response will show you if they think you’re expensive compared to the competition, or if you’re expensive compared to what it would cost to do the job on their own.
FREE TOOL: Try our free service price calculator
4. [Explain your value] “We’re licensed, insured, and have 5-star ratings…”
If you haven’t been crystal clear about your value initially or if your customer may need another reminder, this is the ideal response. It’s another opportunity to sell your business and remind your customer that you don’t price thoughtlessly—there’s a good reason why you have those prices, and here’s why.
5. “We’re not trying to be the cheapest. Our prices match the quality of our service.”
Let your customer know that while you know you aren’t the cheapest on the market, your prices are worth it. Your prices are based on the quality of your work and the high-level of customer service you provide. This price objection rebuttal solidifies your position as a home service provider who prices based on value.
6. “I understand. I just had a customer say a similar thing. But in the end, they booked the service with me and… ”
Show your customer that you understand their hesitation because you’ve experienced the same situation with another customer before. Make sure that you have a positive result to show. A real-life example shows you’re experienced, and hearing someone else’s experiences can help ease some of their concerns.
Price objections situation 2️⃣ : “There’s some wiggle room in your situation”
Sometimes you have to be flexible and adapt to your customer’s specific situation. Offering a special offer or dropping the price will always be decided on a case-by-case basis. Here are some responses you can use when you want to be extra helpful to your customer.
7. “I’d like to make this work for you. Is this more of a budget issue or a cash flow issue?”
With this price objection rebuttal, you get the opportunity to let your customer know about your monthly financing options—especially if they have a cash flow issue. That gives your client the flexibility to pay when they can. If your customer says that it’s a budget issue, you can then consider whether offering a discount is worth it for you.
8. “How much would you want to spend on this service?”
When you think your customer is asking for a price discount, use this rebuttal to find out what their limit is. If you don’t think that their request is too unreasonable, you can agree to their price or you can meet them halfway.
READ MORE: How to communicate a price increase to your customers [template]
Price objections situation 3️⃣ : “It’s clear that we shouldn’t work together”
Not every customer is going to be the right fit as a client for you and your business—and that’s okay. Part of handling price objections is also about knowing when to let a customer go.
Evaluate whether they are right for you. Look at the scope of the work, their budget, location, referral source, and other similar considerations. Remind yourself that you take time and effort to carefully price your services. It’s not always worth it to explain yourself to customers who just want a bargain.
Try these professional responses to help you communicate with customers who just aren’t the right fit.
9. “I understand. Thank you for considering our company.”
This straightforward response is best for a situation where you don’t see the customer working with you again. They aren’t likely to change their mind, so wrap up the conversation professionally, thank them for their time, and move onto your next estimate.
READ MORE: How to say no to a customer
10. “Thank you for your feedback. Good luck with your project. If we can help you in the future, please get in touch again.”
While this response effectively ends the conversation, it’s professional and welcomes the customer back in the future. Use this response if you feel like a customer has provided you with helpful feedback and if you see the opportunity to work together in the future.
11. “Thanks for letting me know. Your estimate is valid for X more days if you change your mind.”
This response brings the conversation to a close, but it also keeps the door open for your customer in case they change their mind. They know your estimate is available to them while they’re shopping around for other estimates or until they’re ready to start their project.
Best practices to help you reduce price objection discussions
- Sell them on your value and quality before providing the estimate. Include your value proposition at every touchpoint. Communicate your value up front so your customer understands what they’re getting and what they’re paying for.
- Pick up the phone and call. You get a better sense of your customer’s tone and what they’re thinking on a phone call. This isn’t necessary for every price objection discussion, so you can decide which customers are worth the extra effort.
- Know the value of your craft. Be confident in your quality and your prices. You’re strategic about pricing your services, and you ensure that the value of your work matches the price tag.
- Evaluate if you’d like to work with that customer. Not every customer is the right customer for your business, especially if it’s for a long-term project. Consider their overall budget, timeline, and how they communicate with you.
- Move on quickly. If a job isn’t working out and a customer isn’t budging, move on quickly. Simplify your process so you’re not spending hours on a job that isn’t going to move forward.
- Keep track of your conversations. You have a lot of customers to keep track of and even more conversations to remember. Use a field service CRM to make note of the customers who have told you your prices are too high—and what you told them. That way, you’re always prepared for your next conversation.
INDUSTRY-SPECIFIC SERVICE PRICING GUIDES
Think your pricing strategy needs an upgrade? Check out these job pricing resources for your industry:
- – How to price window cleaning jobs
- – How to price landscaping jobs
- – How to price a plumbing job
- – How to price HVAC jobs
- – How to price lawn care jobs
- – How to price commercial lawn care jobs
- – How much to charge for house cleaning services
- – How to price and bid a roofing job
- – How to price a fencing job
Overcoming price objections in your service business
Dealing with price objections and customer price complaints is part of the game when you run a service business. But what sets you apart from your competition is how you handle these tricky discussions.
These conversations can be frustrating, but remember to always maintain your professionalism. You don’t want to burn bridges and end up with a poor online review because of it.
Your professionalism and honesty will go a long way in these price objection discussions. Your customer may come back later down the line when they can afford the work, or when they check out the competition and realize that your prices are more than worth it.